As a result of a slowdown in operations, Mercantile Stores is offering to employees who have been terminated a severance package of $ 100,000 cash; another $ 100,000 to be paid in one year; and an annuity of $ 30,000 to be paid each year for 20 years. Use present value tables to compute the present value of the complete package, assuming an interest rate of 8 percent. Round to the nearest dollar.
Answer to relevant QuestionsUse Excel to answer MC- 1. Round to the nearest dollar. On January 1, Alan King decided to transfer an amount from his checking account into an investment account that later will provide $ 80,000 to send his son to college (four years from now). The investment account will earn 8 ...Peabody Corporation purchased equipment and in exchange signed a three- year promissory note. The note requires Peabody to make a single payment of $ 20,000 in three years. Peabody has other promissory notes that charge ...How do the accounting methods used for passive investments and investments involving a significant influence differ? Refer to the data in ED- 2. Per Share 12/ 31/ 2015…………..$ 24 12/ 31/ 2016…………….31 Required: Assume that MetroMedia management purchased the Mitek stock as trading securities. Prepare the journal entries ...
Post your question